Standard rate
The standard sales tax rate in South Carolina for 2024 is 6%.
Who is obliged to register sales tax in South Carolina
Any business that has a physical presence in the state of South Carolina or has met the threshold must register and pay sales tax.
Threshold
$100,000
Marketplace thresholds by state
The special rules are applicable to the SAAS business.
Software as Service Tax Thresholds by state.
Marketplace
A marketplace facilitator is the retailer and is responsible for remitting state and local sales and use tax for all products sold via its marketplace unless otherwise exempt or excluded from the tax.
Registration procedure
The fee for each tax license is $50.
Sales tax payment and filing date
Tax returns must be filed by the 20th of the month following the tax period.
Penalty and interest
- Failure to file – penalty at the rate of 5% of the taxes due for each month, or path of a month, the return is late;
- Failure to pay – penalty at the rate of 0.5% of the taxes due for every month, or path of a month, the taxes are late.
Discount
If returns are filed and the taxes are paid in full by the due date, the taxpayer is allowed a discount on taxes due. If the amount of taxes is less than $100, then the discount is 3% of the tax. If the amount of taxes is more than $100, then the discount is 2% of the tax.
The maximum discount provided per taxpayer during the state’s fiscal year (July 1 – June 30) is $3,000 or $3,100 if the retailer files his Sales and Use Tax returns electronically.
South Carolina Sales Tax Holiday
Dates: The sales tax holiday in South Carolina is scheduled for the first weekend of August 2024.
Eligible Items:
- Clothing and footwear: Items priced at $100 or less per article are exempt from sales tax.
- School supplies: Items such as pens, pencils, notebooks, and other school supplies priced at less than $30 each are exempt from sales tax.
- Computers, tablets, and e-readers: Devices priced at $1,000 or less each are exempt from sales tax.
During this period, shoppers in South Carolina can take advantage of these exemptions when purchasing qualifying items. It’s a great opportunity for back-to-school shopping and other necessary purchases.
South Carolina Sales Tax Nexus
- Physical Nexus: Physical presence, such as an office, store, or warehouse, creates Nexus.
- Economic Nexus: South Carolina mandates sales tax collection for businesses with gross revenue exceeding $100,000 in annual gross sales in the state.